Section I: Organizational Overview

Raison dtre
Established in 1987 (Part I of the Government Organization Act, Atlantic Canada 1987, R.S.,
c G- 5- 7, also known as the Atlantic Canada Opportunities Agency Act), the Atlantic Canada
Opportunities Agency (ACOA) is the federal department responsible for the Government of
Canadas economic development efforts in the provinces of New Brunswick, Prince Edward
Island, Nova Scotia, and Newfoundland and Labrador.
ACOA works to create opportunities for economic growth in Atlantic Canada by helping
businesses become more competitive, innovative and productive, by working with
communities to develop and diversify local economies, and by championing the regions
strengths in partnership with Atlantic Canadians.

Responsibilities
ACOA plays an important role in developing and supporting policies and programs that
strengthen the regions economy. Its responsibilities are stated in the Agencys legislation,
which mandates the organization to increase opportunity for economic development in
Atlantic Canada and, more particularly, to enhance the growth of earned incomes and
employment opportunities in that region.[1] Although the Agencys policies and program
tools have evolved since its inception, the overall goal remains constant. ACOA is dedicated
to helping the Atlantic region realize its full economic potential in terms of productivity,
competitiveness and growth. This is achieved by addressing structural changes in the
economy, helping communities and businesses to overcome challenges, and finding new
opportunities for growth. ACOA is committed to helping the region make the transition to a
more innovative, productive and competitive economy.
The Agency provides services via 31 local field offices throughout the four provinces, along
with regional offices located in all four provincial capitals and ACOAs head office in Moncton,
New Brunswick. Through its Ottawa office, ACOA ensures that Atlantic Canadas interests
are reflected in the policies and programs developed by other departments and agencies of
the federal government.

Strategic Outcome and Program Activity Architecture

Organizational Priorities
All organizational priorities support the Agencys strategic outcome: a competitive Atlantic
Canadian economy. This outcome reflects the Agencys legislative purpose to enhance the
growth of earned incomes and employment opportunities in Atlantic Canada.
Priority 1

Type[2]

Program Activity

Focus programs and services on initiatives that

advance the levels of productivity and
competitiveness among entrepreneurs, SMEs and
communities across the region. Increased

Ongoin
g

Enterprise Development;
Community Development;
Policy Advocacy and
Coordination

Priority 1

Type[2]

Program Activity

emphasis will be placed on enhancing the

productivity of Atlantic Canadian businesses.

During 2011-12, ACOA invested in 391 projects to advance the levels of

competitiveness among entrepreneurs. Projects supported expansion and
modernization, improved business skills and productivity, and fostered SME
start-up and growth. They also prepared SMEs to capitalize on the National
Shipbuilding Procurement Strategy.

ACOA, through the Atlantic Shipbuilding Action Plan, provided 10 supplier

development information sessions across Atlantic Canada, helping more than
800 participants to understand how they could better position themselves to
take advantage of the Government of Canadas renewal of the countrys naval
and coast guard fleets.

ACOA invested $9.2 million[3] to enable companies to improve their productivity

and business skills, including the implementation of lean manufacturing
techniques.

To fuel productivity and growth, ACOA invested almost $27.3 million[4] in the
expansion and modernization of existing businesses in Atlantic Canada.

The Agency invested close to $9 million[5] in entrepreneurship and business skills

development activities to foster SME start-up and growth.

During 2011-12, ACOA focused efforts to put rural economies on a sustainable

growth track by identifying and assisting high-value projects in rural areas.

In 2011-12, a revised suite of loans was introduced within the Community

Business Development Corporations (CBDCs). These included lending for youth,
first-time entrepreneurs and innovation loans, as well as the Entrepreneurial
Training Fund for business skills training to CBDC clients. Furthermore, as some
of the new loan products are considered to be a higher risk for CBDCs, a Risk
Mitigation Fund was established for the CBDC network. With the new suite of
products, a total of 1,480 loans were approved, representing an investment of
$57.1 million. This resulted in 1,263 new jobs in rural communities in Atlantic
Canada. The CBDCs also provided 8,630 counselling sessions to clients
throughout the region.

ACOA, through the Atlantic Canada Energy Office (ACE), undertook policy
research and coordination activities involving the Provinces, industry and, in
some cases, other international jurisdictions to enhance the regions position in
fostering oil and gas, and clean and renewable electricity policy and sectoral
development.

Population challenges in the Atlantic region continued to strain the ability of

employers to attract, develop and retain a skilled workforce. As federal co-chair
of the Atlantic Population Table (a pan-Atlantic initiative involving the federal

Priority 1

Type[2]

Program Activity

government and the four Atlantic Provinces), the Agency contributed to a

number of initiatives supporting business skills and labour force development in
each province. In addition to supporting provincial efforts to attract skilled
immigrant workers to the region, the Agency delivered tailored projects to
integrate youth, immigrant and minority workers into the labour market and to
raise the human resource capacity of regional businesses.

Priority 2

Type

Provide leadership in helping businesses and

communities in Atlantic Canada to succeed in a
global marketplace. Special emphasis will be
Ongoin
placed on assistance to businesses seeking
g
markets for their R&D outputs and focusing ACOA
support on projects offering the greatest potential
economic impact.

Program Activity

Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination

During 2011-12, ACOA helped 207 SMEs to begin exporting, increase their
export sales, or expand into new markets including India, China, Brazil and the
Caribbean Islands. This was done through matchmaking, trade missions, market
studies and trade shows. As a result, ACOA-assisted SMEs were able to grow
their exports at a rate 5.8 percentage points higher than non-assisted firms.

ACOA met all objectives defined for 2011-12 by staying aligned with Canadas
Global Commerce Strategy and supporting the Americas Strategy, the India
Initiative, and the National Gateways and Trade Corridors Strategy. Activities
under these strategies strengthened the export capabilities of SMEs, helped
them to enter international markets and facilitated their international business
performance.

ACOA displayed strong leadership, rallying federal and provincial partners

behind an integrated approach to international business development. The
implementation of a common logic model, harmonization of the IBDA with the
Business Development Program, and a new performance measurement
framework contributed to improve efficiency and effectiveness.

ACOA led the international business community in identifying seven emerging

industry sectors (aerospace and defence, agrifood and seafood, life sciences,
information communications technology, education and training, ocean
technologies, and clean/renewable technologies) that could expand abroad, in
scoping new export opportunities and in encouraging new methods to grow
traditional sectors.

Priority 2

Type

Program Activity

In 2011-12, ACOA worked with communities and stakeholders in developing

projects with strong economic impact under the Innovative Communities Fund
(ICF). These efforts led to 100 projects being approved under the program, with
a total project cost of $127.8 million and an ACOA contribution of $34.4 million.
The impact of ICF projects was measured through a qualitative review of project
results. The findings demonstrated that all projects were successful in achieving
their intended objectives as well as those of the program.

Priority 3
Build on the Agencys success in engaging
stakeholders and facilitating partnerships to
increase innovation capacity within Atlantic
Canada. Focus on the commercialization of R&D
outputs through the Agencys Innovation and
International Business Development program subactivities.

Type

Program Activity

Ongoin
g

Enterprise Development;
Policy, Advocacy and
Coordination

ACOA invested $82.4 million toward innovation project costs of $165.5 million.
This means that the Agencys funding leveraged $1.00 from other sources for
every dollar invested and resulted in 57 meaningful partnerships created
through the Atlantic Innovation Fund (AIF).

ACOA continued to focus on strong public-private collaboration and investing in

leading-edge R&D projects through the AIF. Under the 2011 competitive round
of the AIF, 21 projects were approved in early 2012-13, receiving $48.7 million
in funding from ACOA. Many of these projects involved collaboration between
universities and the private sector.

Through its Business Development Program, the Agency invested $31.8 million
in innovation projects, including over $11.8 million in technology adaptation
projects.[6]

In 2011-12, the Agency continued the implementation of its commercialization

strategy with the approval of $1.9 million[7] in commercialization initiatives and
by assisting Atlantic Canadian SMEs and institutions in reaching their
commercialization potential. This was accomplished through project investments
that included investor-readiness training; access to international markets; justin-time consulting and senior management mentoring; and cluster
development.

The Agency also renewed its funding to Springboard Atlantic Inc., which
combines the research and commercialization strengths of its 19 university and

Priority 3

Type

Program Activity

college members to create a pan-Atlantic network. The Agency helped this

network to focus on increasing its engagement with industry throughout Atlantic
Canada. The network has already been instrumental in bridging the gap
between researchers and the private sector, playing a key role in facilitating
public-private partnerships nationally, internationally and through Atlantic
Canada. Working with its member institutions and private-sector partners,
Springboard was instrumental in the creation of six new spinoff companies
during 2011-12.

Throughout 2011-12, the Agency continued its work in the areas of science,
technology and innovation, aiming to engage stakeholders and facilitating
partnerships within Atlantic Canadas regional innovation system. The Agency
participated in working groups on innovation and represented the interests of
Atlantic Canadian firms before the Expert Panel on the Review of Federal
Support to Research and Development.

Priority 4

Type

Contribute to the delivery of federal priorities and

commitments identified through the federal
New
budget, initiatives arising from the Strategic
Review and other strategies.

Program Activity
Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination;
Internal Services

As the lead federal department in Atlantic Canada managing economic

development programming, ACOA delivered and supported federal priorities and
commitments identified in Budget 2011 to address the economic challenges and
opportunities in Atlantic Canada.

ACOA developed the Atlantic Shipbuilding Action Plan in response to the

National Shipbuilding Procurement Strategy in order to help SMEs, research
institutes and industry sector organizations better position themselves to
maximize opportunities in the region.

The Agency identified savings of $15.2 million, mainly in operating costs, with
savings to be fully materialized by 2013-14.[8] A strategy was developed and
implemented in 2011-12 to provide greater value for taxpayers money. The
Agencys objective was to further reduce operational costs with a view to
maximizing operational efficiency and eliminating, wherever possible, the
duplication of services. The ultimate goal of the exercise was to protect and
enhance programs and services directed at the Agencys main clients Atlantic
Canadian SMEs.

Priority 4

Type

Program Activity

The Recreational Infrastructure Canada (RInC) program (under Canadas

Economic Action Plan announced in Budget 2009) was extended until October
31, 2011. ACOA continued to be the primary vehicle for delivering and
managing the program in Atlantic Canada. As of October 31, 2011, a total of
230 projects had been funded under RInC, having total project costs of $114.5
million and federal investments of $33.9 million, which leveraged another $80.6
million.

Priority 5
Continually improve the Agencys ability to
provide excellent advice to government and
excellent service to Canadians through Public
Service Renewal.

Type

Program Activity

Enterprise Development;
Community Development;
Ongoing Policy, Advocacy and
Coordination;
Internal Services

In 2011-12, ACOA continued to place great emphasis on the excellence agenda

and Public Service Renewal. The Agency recommitted to important goals to
sustain a culture of excellence, keep its employees engaged, and renew its
workforce and workplace. ACOA implemented a series of actions designed to
engage all employees in efficiently and effectively achieving the Agencys
business objectives while ensuring that the Agency continues to be a workplace
of choice. These include the implementation of enhanced continuous learning
plans, the delivery of Having Difficult Conversations sessions, a Respectful
Workplace Initiative, and transforming staffing tools and practices.

The 2011 Public Service Employee Survey Results shows that 84% of ACOA
employees would recommend their department as a great place to work, which
is 20 percentage points higher than reported in the public service overall. Also,
76% of ACOA employees (up 8 percentage points from 2008) would remain with
their department even if a comparable job was available elsewhere in the Public
Service.[9]

ACOAs People Management Program (PMP), implemented in 2011-12, has been

selected to appear on the Clerk of the Privy Council's website as a best practice
under Spotlight on Renewal. The Agencys PMP equips managers with the skills
to support employees and effectively address performance issues. The PMP
places an emphasis on teamwork, community and collectivity. It focuses on
collaboration with manager communities inside and outside the Agency, such as
with other federal departments (e.g. Environment Canada) and Federal Councils
in different regions. In the Management Accountability Framework Round IX,
ACOA once again received a strong rating under Excellence in People
Management.

Priority 5

Type

Program Activity

ACOAs Integrated Business Planning Strategy supports renewal of the work

environment by incorporating smart practices and lessons learned into the
annual planning and reporting processes. These improvements facilitate broader
collaboration across the Agency and improved efficiency in its planning and
reporting activities. The Agencys annual Integrated Business Plan, approved in
March 2011, was compiled through extensive consultation and collaboration at
all operational levels and resulted in the development of key operational and
management priorities that reflect departmental obligations and Government of
Canada priorities. The plan provided a solid framework by which to develop
performance agreements for senior officials and all staff.

Priority 6
Support more effective and efficient decision
making by creating and maintaining efficiencies
in the delivery of services to internal and
external clients.

Type

New

Program Activity
Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination;
Internal Services

With a focus on rethinking business processes and service delivery platforms,

the Agency identified opportunities to consolidate back-office functions,
including human resources and financial services, information technology,
communications and contracting, while maintaining the current service delivery
standards and without affecting programming.

The Agency undertook technology-enabled projects to help automate and

streamline administrative functions tied to the delivery of its programs and
services. Business solutions were implemented in collaboration with the program
sectors of economic development, tourism, and international business
development, as well as with internal service functions such as human
resources, finance, communications, and audit and evaluation

The Agency has made good progress toward the development and
implementation of service standards for its major grants and contributions
programs.

Priority 7

Type Program Activity

Facilitate senior management decision making by managing New

information in such a way as to ensure the availability of

Internal Services

Priority 7

Type Program Activity

timely, accurate and organized information.

ACOA introduced a series of executive dashboards to facilitate senior

management decision making on topics such as managing new business, the
grants and contributions portfolio, service standards, resources and results.
Reviewing these dashboards is now a standing item at every meeting of the
senior management team.

The Agency developed operational dashboard indicators to assist staff in better

managing performance in their lines of business. The dashboards are updated
automatically, ensuring access to the most up-to-date information possible for
informed decision making.

The Agency increased its use of electronic systems to classify and manage
information and, with the release of a new search web portal, is now able to
quickly locate and retrieve electronic information assets.

Priority 8
Cultivate a culture that upholds the
principles of values and ethics within the
Public Service of Canada in order to
provide service with integrity and maintain
the confidence and trust of the public.

Type

Previously
committed

Program Activity
Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination;
Internal Services

ACOA supports and promotes the development of a culture that upholds the
principles of values and ethics within the Public Service through a
comprehensive strategy, communications plan and learning strategy. Some of
the activities undertaken in 2011-12 included communication from senior
management to promote a values and ethics culture, and an online discussion
forum Talking About Values and Ethics surrounding the theme of Respect for
People. The Agency also created and delivered respectful-workplace sessions.
An internal audit of values and ethics practices was conducted and concluded
that ACOAs values and ethics management program is well designed and
conforms to Treasury Board of Canada Secretariat guidance. Furthermore, in the
latest round of the Management Accountability Framework, ACOA received a
strong rating for Area of Management Values and Ethics.

Through a collaborative process involving representatives of all levels within the

organization, ACOA developed a new organizational code of values and ethics
that is consistent with the Values and Ethics Code for the Public Sector. This
code embodies values and ethics principles, which are embedded in all Agency
activities.

Risk Analysis
To ensure that the Agency is able to achieve its strategic outcome, it must be successful in
the design and delivery of its programs and services. Risk management planning is a critical
element in accomplishing those objectives. ACOAs approach aims to identify external and
internal risk factors that pose a threat to the Agencys ability to achieve its strategic
outcome and, where possible, to develop effective measures to mitigate risks. Within the
context of economic development, several high-level external and internal risk factors
continue to be the foundation for discussion during the risk assessment process.
External Factors
The world economy is continuing to recover from the global recession that occurred in 200809. The economic recovery has been supported by stronger economic growth in emerging
and developing countries, while growth in advanced economies has been softer due to the
European sovereign debt crisis. The U.S. economy has also struggled to find its footing since
the recession, as American firms have been reluctant to hire new workers. In Canada, the
economy has recovered more quickly than in other developed economies, with real gross
domestic product and employment returning to pre-recession levels. The Canadian economy
began to stabilize in mid-2009 in response to policy measures in Canada and abroad.
In Atlantic Canada, the economy has done quite well over the past few years, growing faster
than the national average, due to private-sector-led growth in dynamic sectors such as
mining and oil and gas extraction, information and communications technologies, and
finance. Atlantic Canadas entrepreneurial vitality has been a crucial factor in this economic
performance, with growth in private capital investment in the region outpacing Canadas
performance since 2008. Additionally, R&D spending in Atlantic Canada, a key factor in
improving innovation and productivity levels in the region, has increased faster than the
national level, with most of the improvement occurring at the level of private-sector
spending.
Slower economic growth throughout the world in the past couple of years, and more
specifically in the U.S., combined with a strong Canadian dollar caused additional challenges
to the Atlantic regions exporters. While the total value of exports rose sharply, the increase
was mostly a result of higher commodity prices, especially in the energy and mining sectors.
The rise in the Canadian dollar, along with increasing global competition, is forcing
businesses in Atlantic Canada to become more competitive. One way for a firm to increase
its competitiveness is to raise its level of labour productivity.[10] According to Statistics
Canada data, Atlantic Canada experienced higher labour productivity growth than did
Canada. Between 2001 and 2011, labour productivity in Atlantic Canada grew at an average
rate of 1.8%[11] per year, compared with 0.8% at the national level.
Internal Factors
ACOA continues to operate in a period of considerable transformation. It is actively seeking
ways to become more effective and efficient in delivering its mandate.
Risk Management

Progress continues to be made in the implementation of integrated risk management

throughout the various levels of the organization. To ensure access to current risk
information that supports decision making, the Agency conducts an annual risk assessment
process that identifies, analyzes and evaluates key risks that could impede its ability to
achieve expected results and deliver its mandate. The results of this process are used to
update the Agencys Corporate Risk Profile, which is the key document for communicating,
monitoring and mitigating key risks.
During 2011-12, measures were taken to mitigate the Agencys three key risks:
management information, people management, and technology.

Key Risk/Challenge

Management Information
Risk
The risk that senior
management does not have
readily accessible,
comprehensive, targeted
data to understand the
financial and program health
of the organization and
support decision making.

People Management Risk

Mitigation Measure

Link to Program
Activities

The Agency continued to

improve the availability and
use of information to support
decision making through
executive dashboards for
senior management, as well
as operational dashboards to
support middle management.
Results were monitored
throughout the year and the
review of executive
dashboards is a standing
item at executive committee
meetings.

Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination

The rating for this risk has

essentially remained the
same during 2011-12. The
Agency will continue its
efforts to ensure the timely
adaptation of information
systems to meet evolving
management information
needs.

During 2011-12, Public

Service Renewal goals
remained a priority for ACOA
The risk that ACOAs talent
and served as a means of
agenda (leadership,
ensuring that the Agency has
recruitment, training,
promotion, work-life balance, the talent required to move
the business forward. The
competencies) does not
Agency placed particular
adequately sustain the
effort in designing and
workforce required to carry
out the Agencys mandate in implementing a People
Management Program to
the future, and that the

Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination

Key Risk/Challenge

Mitigation Measure

Link to Program
Activities

equip managers with the

proper tools and support to
effectively manage
employees through these
times of corporate change.
The Agency implemented
workforce adjustment
measures in such a way to
allow enough time for
knowledge transfer and
efficient change management
practices to take place.

Agency experiences a
significant loss of corporate
memory and has difficulty
implementing change
management.

Technology Risk

Results from the 2011 Public

Service Employee
Survey show that 98% of
ACOA employees are willing
to put in the extra effort to
get the job done, and 84% of
ACOA employees reported
they get the training they
need to do their job
(compared with 69% at the
federal public service level).
Also, 80% of ACOA
employees agree that the
Agency does a good job of
communicating its vision,
mission and goals (compared
with 67% at the public
service level).[12] The Agency
will need to continue to
invest in employees
continuous learning and
provide managers with the
support needed to effectively
manage its workforce.

During 2011-12, the risk was

mitigated in large part
through the focused efforts
The risk that information
to replace higher risk
technology (IT) in the
systems and equipment. The
medium term (two to four
Agency invested $150,000 in
years) will not have the
life cycle replacement of
capacity to provide
development and support for aging computer equipment
and an additional $75,000 in
a suite of modern,
professional services for
compatible tools for clients

Enterprise Development;
Community Development;
Policy, Advocacy and
Coordination
Internal Services

Key Risk/Challenge

and Agency personnel,

thereby leading to potential
inefficiencies. There is also
financial exposure for a large
capital funding burden in one
fiscal year due to tools and
systems needing
replacement at the same
time.

Mitigation Measure
development and support
related to high-risk systems.
ACOAs Committee on
Information Management
and Technology met its
mandate by ensuring that IT
investment strategies were
aligned with Agency
priorities. It is also important
to note that, with the
creation of Shared Services
Canada (SSC) in
November 2011, many of the
tools and larger systems
supporting ACOAs operations
have been appropriated by
the new SSC agency
(including nine FTEs).
Although many of the risks
tied to these systems remain
and have simply been
transferred to SSC, by its
mandate SSC will be
consolidating systems and as
part of this effort will be
decommissioning those that
are obsolete. This work will
be facilitated by the larger
financial and human
resources capacity of this
new organization, which
resulted from the transfer of
resources from 43 smaller IT
organizations within partner
departments.
The availability of IT systems
has enabled Agency staff to
perform their duties in a
productive and cost-effective
manner, thereby enabling
efficient delivery of services
and programs to Atlantic
Canadians.
The likelihood of the risk
materializing is largely
unchanged. Part of the risk

Link to Program
Activities

Key Risk/Challenge

Mitigation Measure

Link to Program
Activities

may have transferred with

some of the more critical
systems now being
supported by SSC; however,
the potential impact of the
risk has not changed.

Summary of Performance
2011-12 Financial Resources ($ millions)
Planned Spending

Total Authorities

Actual Spending

317.9

341.3

330.4

2011-12 Human Resources (full-time equivalents)

Planned

Actual

Difference

711

683

28

Progress Toward Strategic Outcome

Strategic Outcome: A competitive Atlantic Canadian economy
Performance Indicator
Increase in Atlantic gross domestic
product (GDP) for every dollar of ACOA
expenditure in direct support of business
Performance Summary
($ millions)

Target[13]
$4.50

2011-12 Performance
Performance is calculated over a
five-year period, which will end
in 2012-13.[14]

Program
Activity

2010-11
Actual
Spendin
g

Alignment to
Government
of Canada
Outcome

2011-12

Main
Estimate
s

Planned
Spendin
g

Total
Authoritie
s

Actual
Spendin
g

Enterprise
Developmen
t

191.0

170.2

170.2

179.6

172.9

Community
Developmen
t

161.9

100.4

100.4

111.9

103.8

Policy,
Advocacy
and
Coordination

13.7

11.4

11.4

12.5

13.7

366.6

282.0

282.0

304.0

290.4

41.8

35.9

35.9

37.3

40.0

408.4

317.9

317.9

341.3

330.4

Sub-total
Internal
Services
Total

Strong
Economic
Growth

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canadas
commitment to improving the transparency of environmental decision making by articulating
its key strategic environmental goals and targets. ACOA ensures that consideration of these
FSDS outcomes is an integral part of the Agencys decision-making processes.
ACOA contributes to the following FSDS themes under two of its program activities, as
indicated by the icons below.

Theme I
Addressing Climate Change and Air Quality
Program Activity: Policy Advocacy and Coordination

Theme IV
Shrinking the Environmental Footprint Beginning with Government
Program Activity: Internal Services
During 2011-12, ACOA considered the environmental effects of its initiatives (subject toThe
Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals),
and determined that no strategic environmental assessments were required during the year
in review.
For further information on ACOAs activities to support sustainable development and
strategic environmental assessments, see the Agencys website.
For complete information on the FSDS, see Environment Canadas website.

Expenditure Profile

D
ACOAs actual spending for 2011-12 was $330.4 million. Compared with actual spending of
$408.4 million in 2010-11, this represents a decrease of 19%, or $78.0 million. Variances in
actual spending profiles are due to a decrease of $0.7 million in operating expenditures and
a decrease of $77.3 million in grants and contributions.
The variance in grants and contributions is mainly attributable to the termination of
initiatives under Canadas Economic Action Plan, which represent decreases as follows:

$55.0 million for the Community Adjustment Fund; and

$16.3 million for the Recreational Infrastructure Canada

program.

The remaining $6 million decrease results from normal variations in payouts of other
contribution programs.
Analysis of 2011-12
Planned spending of $317.9 million was augmented by $23.4 million as a result of transfers
from other departments and changes in authorities.

$7 million was transferred from other departments to further

support community economic development priorities in New
Brunswick, along with $1.9 million for international business
development activities.

A number of changes in spending authorities occurred during

the fiscal year, resulting in a net increase of $14.5 million.
Increases in authorities included:

$7.0 million made available from the collection of

repayable contributions;

$3.4 million to support construction activities related to

recreational infrastructure;

$4.2 million for operating budget carry forward;

$6.2 million for severance pay, parental leave benefits,

and leave payouts; and

$0.7 million in various other minor adjustments.

Reductions in authorities included:

$5.5 million identified as savings under the Strategic Review;

and

$1.5 million transferred to Shared Services Canada.

Actual spending of $330.4 million resulted in a surplus of $10.9 million from total authorities
of $341.3 million. The Agency will access this surplus through an operating budget carry
forward of $3.7 million and a reprofile of $7.0 million to future years. The balance of
$0.2 million is returned to the Consolidated Revenue Fund.
Analysis by Program Activity

D
In the Enterprise Development program activity, actual spending of $172.9 million resulted
in a surplus of $6.7 million from total authorities of $179.6 million. This variance was a
result of a net decrease in contribution payments of $2.1 million due to normal year-to-year
variations and a reduction in operating costs of $4.6 million.
In Community Development, actual spending of $103.8 million resulted in a surplus of
$8.1 million from total authorities of $111.9 million. The majority of the variance is due to a
$7.0 million reallocation to ACOA from Industry Canada in support of community economic
development priorities in New Brunswick through ACOAs Innovative Communities Fund. Due
to delays in project approvals, the $7.0 million was not spent in 2011-12 and has been
reprofiled to future fiscal years. The balance of the variance is due to normal fluctuations in
program payouts.
In the Policy, Advocacy and Coordination program activity, actual spending of $13.7 million
exceeded planned authorities of $12.5 million by $1.2 million. The variance is due to normal
spending fluctuations.
The Internal Services program activity reported actual spending of $40.0 million, exceeding
total authorities of $37.3 million by $2.7 million. This variance is mainly due to increases
resulting from normal spending fluctuations.
Canada's Economic Action Plan (EAP)
On December 2, 2010, the Government of Canada extended the deadline for completion of
certain EAP infrastructure projects from March 31, 2011 to October 31, 2011. For ACOA, the
extension applied to projects under the Recreational Infrastructure Canada program and
represented additional authorities of $3.4 million in fiscal year 2011-12. Actual spending in
fiscal year 2011-12 amounted to $3.1 million.
The termination of initiatives under the EAP reduced authorities by $71.3 million from fiscal
year 2010-11 to 2011-12.

Estimates by Vote
For information on ACOAs organizational votes and/or statutory expenditures, please see
the 2011-12 Public Accounts of Canada (Volume II). An electronic version of the Public
Accounts is available on the Public Works and Government Services Canadas webpage,
Public Accounts of Canada 2012.

[1] Atlantic Canada Opportunities Agency Act, R.S.C., 1985, c. 41, 4th Supp.
[2] Type definitions:

New (newly committed to for fiscal year 2011-12)

Previously committed to (committed to one or two fiscal years

earlier, i.e. 2009-10 or 2010-11)

Ongoing (committed to at least three fiscal years earlier, i.e.

2008-09 or earlier)

[3] EBSD program sub-activity report (April 1, 2011 to March 31, 2012), ACOA Corporate
Data System: data reported on May 7, 2012.
[4] Financing Continuum program sub-activity report (April 1, 2011 to March 31, 2012),
ACOA Corporate Data System: data reported on May 18, 2012.
[5] EBSD program sub-activity report (April 1, 2011 to March 31, 2012), ACOA Corporate
Data System: data reported on May 14, 2012.
[6] ACOA Corporate Data System: data reported on May 7, 2012.
[7] ibid.
[8] The Next Phase of Canadas Economic Action Plan A Low Tax Plan for Jobs and
Growth, Annex 1, June 6, 2011, p. 218 and 220.
[9] 2011 Public Service Employee Survey, Treasury Board of Canada Secretariat, Office of
the Chief Human Resources Officer, 2011. Conducted from August 29 to October 7, 2011,
with a response rate of 72.2%.
[10] Statistics Canada defines labour productivity as the measure of real gross domestic
product (GDP) per hour worked. The growth in labour productivity is one of the factors
influencing long-term economic growth and living standards.
[11] Source: Calculations done by ACOA using data from Statistics Canada (CANSIM Table
383-0011).

[12] 2011 Public Service Employee Survey, Treasury Board of Canada Secretariat, Office of
the Chief Human Resources Officer, 2011. Conducted from August 29 to October 7, 2011,
with a response rate of 72.2%.
[13] Cumulative five-year target (2008-09 to 2012-13).
[14] Measuring the impact on GDP in Atlantic Canada is a long-term, multi-dimensional
undertaking. Thus, the Agency will report results every five years, based on an analysis of
data from internal systems, using econometric modelling from The Conference Board of
Canada. This indicator will be measured next in 2013, covering the five-year period of 200809 to 2012-13.